Pisani: Greece Sneezes, US Catches a Cold

Once again, events on the other side of the pond are capturing trader attention:

1) Greek bonds are again blowing out. Yields are up: the 10 yr Greek bond yield is now over 7 percent, up about 30 basis points today. The 5 year note, which was sold on Monday at a coupon of 6.2% is now yielding 6.56%. The spread between those bonds and comparable European bonds are widening. (See:Others Will Follow Greek Debt Tragedy: Niall Ferguson)

2) Standard and Poor's, just after the U.S. market opened, released a report saying the United Kingdom was no longer classified as being among the most stable and low-risk banking systems globally. The U.K. market dropped on that.